Webtrends Tracking Code
 
UK Home >  OUT-LAW News >  News Archive >  2002 >  April 2002 >  Firewall company concedes to European Commission demands

Firewall company concedes to European Commission demands

OUT-LAW News, 11/04/2002

The European Commission this week closed an investigation into Israeli company Check Point Software Technologies after the firewall developer undertook not to engage in exclusionary supply practices with distributors.

Check Point is one of the world's main players in selling firewall and virtual private network (VPN) software. Firewall/VPN software is used to prevent unauthorised external access to internal computer networks, and to provide data encryption in public computer networks.

The Commission had received a complaint from rival Finnish firm Stonesoft that Check Point's distribution practices were unfairly excluding it from the market.

The Commission found that Check Point had told some of its distributors and resellers that if they attempted to sell Stonesoft's competing firewall/VPN product, they would no longer be supplied with Check Point's own product.

Given Check Point's market presence, the Commission was concerned that this was having a negative foreclosure effect in the market for firewall/VPN software in violation of European Union competition rules.

Following negotiations between the Commission and Check Point, Check Point offered an undertaking which covers the Commission's concerns.

Check Point has undertaken not to place undue or unacceptable pressure upon its distributors and resellers regarding their independent decision whether or not to sell competing products. Check Point will also ensure that its sales and other relevant personnel are informed about the EU competition rules and that they understand the requirement to comply with those laws in their business dealings.

 

 

OUT-LAW Recommends

Data Protection training
We offer training courses on Data Protection and Freedom of Information laws

Winner at 2008 Webby Awards

OUT-LAW star: link to the home page
Disclaimer: This was printed from OUT-LAW.COM, a service of international law firm Pinsent Masons. We hope you find this content useful. However, please note that nothing in this document constitutes specific legal advice. You should consult a suitably qualified lawyer on any specific legal problem or matter. Any questions, please email info@out-law.com.